EV Photo:VCG

German auto giant Mercedes-Benz said it considers the European Commission (EC)'s tariffs on Chinese electric vehicles "a mistake that can lead to far-reaching negative consequences," and calls for the postponement of the enforcement of the tariff measures, following a crucial EU vote on the EV issue.

The automaker said in a statement sent to the Global Times on Saturday that it supports a liberal trade regulation based on WTO rules. It called for the postponement of the tariffs, as it believes a solution can be reached through dialogue and negotiation, which takes time.

The EU held a vote on whether to impose a five-year countervailing duty on Chinese EVs on Friday local time. A statement released by the EC showed that the commission's proposal to impose definitive countervailing duties on imports of battery electric vehicles from China has received the necessary support from EU Member States for the adoption of tariffs.

China's Ministry of Commerce (MOFCOM) on Friday expressed strong opposition to EU's imposition of anti-subsidy tariffs on Chinese EVs, stating that the EU's anti-subsidy case against China's EVs is unfair, non-compliant and unreasonable protectionist practice. The ministry said that China-EU technical teams will continue negotiations from October 7.

Mercedes-Benz said it is convinced that countervailing duties impair the competitiveness of the industry over the long term, and free trade and fair competition ensure prosperity, growth, and innovation. Measures that affect a trading order based on WTO rules, which is beneficial to all parties, should be avoided urgently, it added.

"Now more than ever it is crucial that the EU and China remain engaged in dialogue and reach a negotiated solution that is of mutual interest. We are convinced that there can be such a solution," it said.

The company's statement came amid rising opposition voices in Germany as well as in EU over the EV tariffs.

Germany, the EU's largest economy, voted against the proposal, Reuters reported.

Oliver Zipse, CEO of German auto maker BMW, said the vote "a fatal signal for the European automotive industry" and calls for "a quick settlement between the EU Commission and China to prevent a trade conflict from which no one gains," according to Reuters.

Zipse said the fact that Germany voted against the tariffs is an important signal and increases the chances of a negotiated settlement.

Global Times